MY HANDMADE WARDROBE LTD

Executive Summary

My Handmade Wardrobe Ltd is an early-stage micro-entity showing signs of initial financial strain with negative net assets and relatively high deferred income. While regulatory compliance is up to date and short-term liquidity appears manageable, investors should be cautious due to the company’s limited operational scale and potential solvency risks. Further investigation into the company’s accruals, cash flow, and business viability is recommended before considering investment.

MY HANDMADE WARDROBE LTD - Analysis Report

Company Number: 15253300

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH

Justification: The company, incorporated recently in November 2023, shows net liabilities of £6,279 as at 30 November 2024 despite having positive net current assets. The presence of negative shareholders' funds and a relatively small asset base, combined with accruals and deferred income exceeding total assets less current liabilities, indicates potential solvency and liquidity challenges typical of a very early-stage micro entity.

2. Key Concerns:

• Negative net assets (£-6,279) and shareholders’ funds indicating an accounting deficit which may reflect accumulated losses or initial capital shortfall.
• High accruals and deferred income (£9,390) relative to total assets suggesting possible obligations or income recognition timing issues that could impact cash flow.
• Lack of operational scale: only one employee (the director) and micro-entity status limit revenue generation potential and financial resilience.

3. Positive Indicators:

• The company is active and compliant with filings; no overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• Positive net current assets (£835), meaning current assets exceed current liabilities, which is favorable for short-term liquidity.
• Owner/director control centralized with Mrs. Sarah Laws, who may be directly involved in the business with a designer background, potentially ensuring focused management.

4. Due Diligence Notes:

• Clarify the nature and terms of the accruals and deferred income to understand cash flow timing and any underlying liabilities.
• Review the company’s business plan and cash flow projections to assess funding sufficiency and sustainability given the negative net asset position.
• Monitor future financial statements for trends in profitability, asset growth, and capital injection or shareholder loans to offset initial deficits.
• Assess the director’s financial support capacity and any related party transactions.